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Jakarta Post

Editorial: US-China tension

With its gigantic economy, China now is much more confident in facing the West, including the US, which is on the brink of economic collapse

The Jakarta Post
Tue, February 2, 2010

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Editorial: US-China tension

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ith its gigantic economy, China now is much more confident in facing the West, including the US, which is on the brink of economic collapse. There is growing frustration in America where millions have lost their jobs in the last two years and massive layoffs continue. While there is little possibility that these two extreme contrasts can bring the two nations into fatal confrontation, the world can face unexpected risks if leaders of the US and China irresponsibly play their cards to satisfy domestic demands.

China and the US traded harsh words over the weekend after US President Barack Obama announced Friday that his administration would go ahead with the US$6.4 billion arms sales to Taiwan. Beijing threatened to retaliate unless Washington scraps the sales plan to Taiwan. Knowing China’s mighty economy, there are only few countries or companies in the world that would want to risk angering China.

Washington and Beijing need to realize that both sides have no choice, but step up mutually beneficial relations, including on trade. President Obama is facing impatient Americans who want him to act quickly in boosting US exports and open foreign markets for US products or services. Obama is also facing mounting pressure to act firmly against China – the target of Americans’ frustration because of the huge trade imbalance between the two. US-China bilateral trade was worth more than $330 billion last year.

The US of course has realized that its position against China has changed and it should face its rival from a more equal stance. But China also needs to realize that its strategy of using its economic power in exercising its foreign policies can backfire. Many Asian countries are closely watching China and there is also increasing anxiety about its increasing global influence.

China has become another superpower – and the US must face this reality. But China needs to take into account the uneasy feeling against the rise of China. The tactics to use its economic power against other countries one day may harm China’s own interests. China for sure does not want to take this risk.

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